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TMI Blog2005 (10) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Appellate Tribunal failed to appreciate that assuming while denying that the above sum of Rs. 3,36,148 represented a contingent liability, the same having been determined scientifically and accurately was a legitimate deduction in the computation of the appellant's business income? 2. Whether the Income-tax Appellate Tribunal erred in its interpretation of section 32AB of the Act and parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Supreme Court in the case of Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273 wherein the Supreme Court has observed as under: "A perusal of section 32AB, as it stood at the relevant time, shows that if an assessee has a total income including income chargeable to tax under the head 'Profits and gains of business or profession' and if the income from such business is derived from an 'eligible bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business and its business of manufacture and sale of tyres and sale and purchase of units of the UTI are common in nature and both the businesses are intertwined and interlaced. This finding is accepted by the High Court also. We also find that this business of the assessee-company of buying and selling of units is a business as contemplated under section 32AB of the Act. The question then is: is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-company is in the course of its 'eligible business'. Therefore, in our opinion, the dividend income earned by the assessee-company from its investment in the UTI should be included in computing the profits of eligible business under section 32AB of the Act." No contrary view has been brought to our notice. Since this court has relied upon the observations of the Supreme Court and held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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